According to a recent Bloomberg report, Bristol-Myers Squibb Company (BMY) filed a lawsuit against Merck & Co. Inc. (MRK) accusing the latter of infringing its immunotherapy patent granted on May 20. Immuno-oncology treatments utilize the natural capability of the patient's own immune system to eliminate cancer cells.
According to the lawsuit filed in the U.S. District Court of Delaware, Bristol-Myers alleged that Merck in a later-developed immuno-oncology treatment, Keytruda (pembrolizumab), has exploited its invention. We note that Bristol-Myers filed the lawsuit on the day Keytruda gained approval in the U.S. for treating patients suffering from advanced melanoma, a serious form of skin cancer. The disease had progressed even after treatment with Bristol-Myers’ skin cancer drug Yervoy. (Read more: Merck's Anti-PD-1 Drug Keytruda First to be Launched in US).
The report stated that Bristol-Myers had claimed unspecified damages from Merck in this patent infringement case. We expect investor focus to remain on the immuno-oncology case between the two companies.
Bristol-Myers is also eyeing the immuno-oncology market that is expected to revolutionize cancer treatment. The company is looking to seek U.S. approval of its immuno-oncology drug Opdivo (nivolumab) for treating advanced melanoma by Sep 30, 2014 (read more: Bristol-Myers to Seek U.S. Approval for Immuno-Oncology Drug). Approval of Bristol-Myers’ treatment in the U.S. would result in Opdivo and Keytruda competing for market share. Many other companies such as Roche (RHHBY) are developing treatments targeting immuno-oncology.
Both Bristol-Myers and Merck carry a Zacks Rank #3 (Hold). A better-ranked stock in the health care space is Gilead Sciences (GILD) which sports a Zacks Rank #1 (Strong Buy).
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